14 January 2009

Carphone Cuts Cost
Of Nokia's Comes With Music Phones?!

The price of Nokia's first mobile phone equipped with its ambitious Comes With Music service has been cut by more than a third, which is caused by the poor sales and fact that consumers do not understand how Comes With Music works analysts say!

The Times reports that the cost of the first Nokia Comes With Music device, Nokia 5310 XpressMusic which is launched last October has been slashed from £127.10 to £82.18, despite only being on sale for less than three months.

Carphone said the sharp price cut is part of routine reductions across its mobile portfolio for its January sale.

CCS Insight’s analyst Paolo Pescatore tend to disagree with the Carphone’s statement and he said that sales of Comes With Music have been “lacklustre” so far. “They are struggling with sales,” he said. “Nokia is keeping shtum about figures but we’ve heard from sources they had hoped to do better in the run up to Christmas.”

“It’s a big test,” Mr Pescatore said. “Comes With Music is Nokia’s first big stepping stone for Nokia’s first big leap into the market with a service-led proposition.

“It’s a sentiment to the challenges companies like Nokia face in this market when they are seen to be just mobile makers.” He added price cut reflected Nokia’s determination to make CWM a success in the UK.